VTB Capital opens up access to the EV sector for investors with launch of new indexes
VTB Capital has developed and launched two new thematic indexes that allow customers to invest in the growth and development of the electric vehicle sector at different stages of the production chain. The VTBSEM index includes shares of the largest manufacturers of semiconductors, one of the main components in the production of electric vehicles, and the VTBCAR index is a portfolio of shares of the largest European automakers that have expertise in the car production and have announced plans for active expansion into the electric car market.
The launch of the new indexes allowed VTB Capital to expand its range of index platforms to five. In addition to the European Manufacturers Index (VTBCAR) and the Semiconductor Manufacturers Index (VTBSEM), VTB customers can also invest in the following index products:
- The Future Index (VTBFUT) reflects the dynamics of a diversified portfolio of companies engaged in the development of emerging technologies, such as robotics, artificial intelligence and cloud tech.
- The Russian Leaders Index (VTBRUS) reflects the dynamics of the portfolio of liquid companies from the main sectors of the Russian economy. The companies included in the index demonstrate outperforming growth rates and are leaders in their industries.
- The Economic Recovery Index (VTBREC) reflects the dynamics of a portfolio of companies from sectors that have been significantly affected by the global pandemic, including the airline industry, finance, oil and energy, and global infrastructure.
The indexes include securities of Russian and foreign issuers, which are selected according to a unique methodology and form the underlying asset of a number of VTB investment bonds. For VTB clients, such bonds represent an investment in a promising idea or concept through a conservative financial instrument with full capital protection. This investment product allows clients to find a balance between the risks of direct investment in the stock market and limited income when investing in more conservative instruments, such as a deposit or fixed-coupon bonds.
Alexey Ivanov, Head of the Open Market Trading Operations Department, Fixed Income Instruments Market Operations Department, VTB Capital, said:
“VTB Capital’s indexes are developed in line with current market trends and customer requests. When creating a new index, our team selects an interesting investment idea and, together with the analytics department of VTB Capital Investments, develops the list of underlying assets and optimal index parameters. A thematic index is a way to invest in a promising segment or sector in a format that is convenient for investors.”
VTB investment bonds are a complex, liquid financial instrument that is currently available only to qualified investors. For this class of debt instruments, both a fixed yield and an income that depends on the dynamics of the underlying asset are established. Developing their own indexes for passive investments is a global practice, and many foreign banks offer their clients similar ideas in the form of structural products, both with and without nominal value protection.